Non-Resident Buyers

Welcome to British Columbia. Non-residents can own property in British Columbia but there are some important considerations.

Mortgage qualifications in Canada are different for non-resident buyers than for Resident Buyers. Non-resident buyers should consult with a  lender or mortgage broker to understand the qualifications for a non-resident buyer. Non-resident buyers will need to open a Canadian bank account and will need to do so in person with identification acceptable to the lender.

Non-resident buyers do not need to be present in B.C. to execute closing documents. A number of lawyer and notary firms, including Bell Alliance, utilize technology to streamline the closing process for non-resident buyers. Documents can be forwarded electronically and executed in front of a lawyer or notary in most foreign jurisdictions. It is important to make arrangements for the transfer of monies well in advance of closing.

Non-Resident Buyers should also consult with a Canadian tax professional to discuss tax treatment both during the period of property ownership and on disposition. A non-resident owner of rental property will be subject to a 25% withholding of taxes on the gross rental income. Administrative rules require that the owner or agent remit these amounts to the Canada Revenue Agency. An non-resident owner may file a special form to have the withholding taxes reduced which essentially treats the non-resident as a resident with respect to the rental income. This form needs to be filed before January 1st of each year. For further information please refer to the Guide for Electing Under Section 216.

Non-resident buyers should also review the information on Non-resident sellers to understand what happens on disposition of the property at a later date.